The assessment basis for the research allowance will be doubled to up to four million Euros for the years 2020 to 2025 compared to the current level. This results in a 25% research allowance of up to one million euros per year, i.e. a total funding volume of up to six million euros for every researching company up to and including 2025. Germany is thus ("finally") catching up in international tax competition at this point.
The bad news: The research allowance will only be granted if a corresponding certificate is issued for the respective research and development project. Currently, however, the responsible certification office has not been determined yet; it is reported that this will be done in late summer 2020. Furthermore, the research allowance can only be applied for after the end of the fiscal year. This means that liquidity will be provided to the researching companies, however, not in the short term. Many companies currently affected by Corona are therefore temporarily dependent on their investors or other support measures.